Scotts Miracle-Gro(US:SMG) Newsfilter·2024-07-16 17:30Core Viewpoint - The Scotts Miracle-Gro Company is focused on transforming its operations to enhance shareholder value, with significant progress made and a positive outlook for fiscal years 2025 to 2027, aiming for gross margin improvement and consistent growth rates [1][20]. Strategic Objectives - The Company will outline its strategic and operational objectives for the next three years, building on its strong market positions in the U.S. Consumer lawn and garden and Hawthorne businesses [2][9]. Midterm Targets - For fiscal years 2025 through 2027, the Company expects SG&A to remain between 15% and 16% of net sales, with a target of achieving a non-GAAP adjusted operating margin exceeding 15% and adjusted EBITDA surpassing $600 million [4][10]. 2024 Outlook - The Company anticipates an average annual growth rate of 3% in net sales through innovation, net pricing, and synergistic mergers and acquisitions in the U.S. Consumer business [19]. Financial Performance - The non-GAAP adjusted gross margin rate is projected to exceed 30% due to improved volume, net pricing averaging over 1% per year, and over $150 million in supply chain efficiencies over three years [11][12]. Cash Flow and Capital Allocation - The Company expects to generate over $300 million in annualized free cash flow after capital expenditures, with a focus on debt reduction and sustaining dividends to shareholders, while planning for balanced capital allocation in the long term [12][20]. Market Position - With approximately $3.6 billion in sales, the Company is the largest marketer of branded consumer lawn and garden products, with well-known brands like Scotts®, Miracle-Gro®, and Ortho® leading their categories [23].